The Cost of Getting Influencer Disclosure Wrong: What the New Gymshark Lawsuit Means for Brands and Creators

Jennifer Santos, Program Development Manager, Institute for Responsible Influence

In April, the Institute for Responsible Influence (IRI) (part of BBB National Programs’ Center for Industry Self-Regulation) launched the Responsible Influence Certification Program to help creators navigate an increasingly complex digital marketplace. The program was built around a simple idea: responsible influence is not just good practice, it is essential risk management for creators, brands, agencies, and consumers.

A newly filed class action lawsuit against activewear brand Gymshark demonstrates why.

On June 16, 2026, a proposed class action was filed in the U.S. District Court for the Southern District of New York alleging that Gymshark and certain influencers failed to adequately disclose material connections between the company and creators promoting its products on social media. 

The Gymshark lawsuit follows a wave of influencer marketing class actions filed in 2025 alleging that consumers were misled by social posts that did not clearly disclose material connections between brands and creators.

According to the complaint, consumers were allegedly led to believe that influencer endorsements reflected independent opinions rather than compensated relationships. The plaintiff claims that these undisclosed relationships influenced purchasing decisions and resulted in consumers paying a premium for Gymshark products.

The allegations remain unproven, and the litigation is in its very early stages. However, the lawsuit highlights a growing reality in influencer marketing: disclosure compliance is not simply a regulatory issue. It has become a legal, reputational, and business risk.
 

The Evolution of Influencer Risk

For years, discussions about influencer disclosures centered largely on Federal Trade Commission (FTC) guidance. Brands and creators focused on avoiding regulatory scrutiny by ensuring that material connections—such as payments, free products, affiliate commissions, or other incentives—were clearly disclosed.

Today, the landscape has evolved.

As the Gymshark complaint illustrates, plaintiffs' attorneys are increasingly testing whether alleged disclosure failures can support broader consumer protection claims. The complaint points to the FTC Endorsement Guides, social media platform disclosure requirements, and alleged failures to clearly communicate paid relationships with creators.[AH2.1][PM2.2]

Whether those claims ultimately succeed in court remains to be seen. What is clear, however, is that disclosure practices are receiving greater scrutiny from regulators, platforms, consumers, and now litigants.
 

Why Disclosure Matters

Transparency is foundational to trust.

When consumers engage with influencer content, they deserve to understand whether a recommendation is based on a personal experience, a paid partnership, an affiliate relationship, or another material connection.

The FTC's Endorsement Guides have long required that material connections be disclosed clearly and conspicuously when they could affect how consumers evaluate an endorsement. Yet many creators still struggle to understand when disclosures are required, where they should appear, and how they should be presented across different platforms and content formats.

As creator marketing ecosystems become more sophisticated—with affiliate programs, creator storefronts, ambassador networks, and performance-based compensation models—the opportunities for confusion only increase.
 

Education Is the Missing Piece

Many organizations rely on contracts, onboarding documents, and disclosure policies to manage compliance risk. Those tools are important, but they are not always enough.

Creators often work across multiple brands, platforms, and campaign structures. Rules are interpreted differently, content moves quickly, and oversight can be inconsistent. A disclosure requirement that seems obvious to a legal team may not be fully understood by a creator focused on producing engaging content.

That gap between policy and execution is where risk emerges.

The IRI’s Responsible Influence Certification Program was created to help close that gap. The certification program provides creators with practical training on:
  • FTC endorsement and disclosure requirements including proper sponsorship and affiliate relationship disclosures
  • Responsible use of artificial intelligence
  • Respect for intellectual property rights
  • Best practices for transparency and consumer trust

Rather than treating compliance as a one-time checklist, the program helps creators understand the principles behind responsible influence and apply them consistently across platforms and partnerships.
 

Responsible Influence Is a Competitive Advantage

Responsible influence is often viewed through the lens of risk reduction. But it also creates value.
Transparent creators build stronger relationships with their audiences. Brands that prioritize accountability strengthen consumer trust. Agencies that invest in creator education help reduce inconsistencies across campaigns and partnerships.

Most importantly, responsible influence helps preserve the authenticity that makes creator marketing effective in the first place.

The allegations raised in the Gymshark lawsuit serve as another reminder that transparency is not optional. Whether driven by regulators, platforms, consumers, or courts, expectations around disclosure and accountability continue to rise.

For creators and brands alike, the question is no longer whether responsible influence matters. The question is whether your organization is prepared.

At the Institute for Responsible Influence, we believe education is the foundation of that preparation. Because when trust is the product, transparency is the strategy.